Description
NSE Clearing revises Market Wide Position Limit and client limits for BECTORFOOD in Securities Lending and Borrowing Scheme, effective December 15, 2025, with significant increases across all categories.
Summary
NSE Clearing Limited has revised the Market Wide Position Limit (MWPL) and position limits for Participants, Institutional Clients, and Non-Institutional Clients for BECTORFOOD in the Securities Lending and Borrowing (SLB) Scheme. The revised limits will be effective from December 15, 2025, representing a significant increase of approximately 5 times the previous limits across all categories.
Key Points
- Market Wide Position Limit increased from 3,129,046 shares to 15,645,232 shares (5x increase)
- Participant limit increased from 312,904 shares to 1,564,523 shares (5x increase)
- Institutional client limit increased from 312,904 shares to 1,564,523 shares (5x increase)
- Non-Institutional client limit increased from 31,290 shares to 156,452 shares (5x increase)
- Changes apply to December 2025 trading period
- Circular issued in pursuance to NCL/CMPT/67763 dated April 30, 2025 and partial modification of NCL/CMPT/71557 dated November 28, 2025
Regulatory Changes
This circular revises position limits under the Securities Lending and Borrowing Scheme for BECTORFOOD. The uniform 5x multiplication factor applied across all limit categories suggests a recalibration based on updated stock parameters such as free float, liquidity, or market capitalization adjustments.
Compliance Requirements
- All participants and custodians must note the revised limits
- Position limits must be adhered to from December 15, 2025 onwards
- Participants should update their risk management systems to reflect new position caps
- Institutional and non-institutional clients must comply with their respective revised limits
Important Dates
- Circular Date: December 12, 2025
- Effective Date: December 15, 2025
- Applicable Period: December 2025
Impact Assessment
Market Impact: The substantial increase in position limits enhances trading capacity in BECTORFOOD through the SLB scheme, potentially improving liquidity and facilitating larger lending and borrowing transactions.
Operational Impact: Participants will have greater flexibility to take positions, which may benefit institutional investors seeking to execute larger securities lending or borrowing strategies. The increase suggests improved market depth or regulatory confidence in the security’s borrowing framework.
Risk Consideration: Higher limits allow for larger concentrated positions, requiring enhanced risk monitoring by participants and clearing members.
Impact Justification
Substantial 5x increase in position limits for BECTORFOOD in SLB scheme affects trading capacity for all participant categories, indicating increased liquidity or regulatory adjustment.